"Stage 2 Business and Enterprise Extended Written Response Business Ownership Structure CONTENTS PAGE Executive Summary....Page 3 Introduction...Page 3 Ownership Structures.Page 4 Future Possibilities...Page 8 Advantages and Disadvantages of purchasing an existing businessPage 9 Conclusion.....Page 9 Bibliography....Page 10 Executive Summary This report looks at providing advice to Steve and Melanie who want to buy a small established business. They are interested in purchasing a local general store and a takeaway food outlet but before actually making an offer for the store, they have a number of important decisions to make. This report will advise Steve and Melanie about commencing their business. It will also help Steve and Melanie to understand the personal and professional requirements needed to run a good business. A variety of sources from different media were used to provide information for the report. Advice was also provided by Tom Stamulous, a small business owner of Company X. This report will look at various options of ownership structures including sole trader, partnership and companies and will consider the advantages and disadvantages of purchasing an already established business."

Introduction

Steve and Melanie plan to buy an established business that is advertised as a local general store and a take-away food outlet. There could be many problems which could affect the business, especially if there is another economic crisis. Steve and Melanies motivation for going into business is to have independence, and they want the freedom to work when and where they want. They also feel they will earn more than they are earning currently. Steve and Melanie have the skills to start a business because they have worked in a bank before and they are aware of the importance of financial planning for a business. The following information will provide initial advice, and outline the steps for achieving success in relation to the structure and possible expansion of the business.

Ownership Structure

A sole trader is a person who owns the business by his or herself. Steve can…(short extract)